Photronics Warns

Photronics (PLAB Quote) slashed third-quarter guidance, citing a shortfall in flat panel-display mask orders and shipments.

The Brookfield, Conn., imaging electronics supplier said it expects to make about 10 cents a share for the quarter on revenue of around $106.5 million.

Analysts surveyed by Thomson Financial were looking for a 29-cent profit, and the company had previously forecast revenue of around $121.5 million.

Photronics said it endured a flat-panel slowdown in both the Korean and Taiwanese regions. The company said it believes the slowdown will be short-term in nature and that design activity continues to be focused on leveraging new manufacturing capability coming online from Generation 7 and Generation 8 facilities in both Korea and Taiwan.

"The revenue shortfall equates to an overall market reduction of FPD designs that were not released as we had originally forecasted," said CEO Michael J. Luttati. "The reduced number of designs, coupled with the average selling prices for these mask sets, precipitated a revenue shortfall that was disruptive in the current quarter."

Shares fell $1.89 late Monday to $12.40.